Here is the process explained the easy way complete with perfect answers for the Paper 2. One full precious mark is given for each tick:
Tips for the Paper 2 (if they question asks to explain about the whole compensation rate process):
1. Divide your answer into 3 paragraphs (low light, compensation point, high light).
2. Write your answers regarding the process & result as given above.
Congratulations on being the master of compensation rate! Make sure to do lots of exercise, & do them with gusto!